RecalibratingConventionalWisdom: Romania-IMFrelationsunderscrutiny CornelBan(BostonUniversity)IDanielaGabor(UWEBristol) December2014  TheIMFandthecentralbank(BNR)sharethesamenarrativeof macroeconomicdevelopmentsinRomania:thatBNRcontrolsmonetary (andtosomeextentfinancial)conditionsthroughitsinflation-targeting regime.ThisnarrativeenablestheIMFtoconstructbalanceofpayment crisesascrisesofstateinterventionintheeconomyandtheBNRtodeny responsibilityforeconomiccrises.  Thesamenarrativesuggeststhatwhilethetransnationalvulnerabilitiesofthe Romanianmarketmodelshouldbereduced,theorderlytransitiontoalocal bankingmodelshouldbeachievedbymarketmeansratherthanviaregulatory interventions.  Byusingliquiditymanagementinstrumentstomanagecapitalflows,andnotfor inflationtargeting,thecentralbankisnotincompliancewiththeIMF’sviews. Whilerecognizingtheshortcomingsofthecentralbank’spolicyframework,the IMFisreluctanttopushforchangebecauseimprovementswouldrequirearadi­calre-thinkoftheroleandactivitiesofforeignbanksinRomania.  Onfiscalpolicy,RomaniangovernmentshavenotmadethemostoftheIMF’s doctrinaltransformation.  TheFund’sresearchandofficialdoctrineontaxationandexpenditurepolicy allowforafairerdistributionofthecostsoffiscalconsolidationthatthe2010 loanprogramwithRomaniasuggests.